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Bill Analysis — Senate Bill 316, Gen. Contractors/Plumbing/Electr. Exempt. (May 11, 2021)

Summary

Bill analysis of Senate Bill 316, Gen. Contractors/Plumbing/Electr. Exempt., for the Senate Commerce and Insurance committee, dated May 11, 2021. It states the bill would expand the exception to general contractor licensure for licensees under Article 2 and Article 4 to include any building project when certain requirements are met. A note states the analysis reflects the contents of S316 if the amendment S316-ABH-19 were to be adopted by the committee. Section 1 would delete the word "public" from the term "public building project," and Section 2 would allow temporary rules to be adopted to implement the provisions of the bill. The act would become effective October 1, 2021.

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Cite this document

“Bill Analysis — Senate Bill 316, Gen. Contractors/Plumbing/Electr. Exempt. (May 11, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-05-11-s316-bill-summary-e14cd3d992/, SHA-256 87c7cf3f30d3cad4d8898f70dffb4bd440adaa0cb293b7ec13b240fc5a7f481b.

Full text

                                                     SENATE BILL 316:
                                                     Gen. Contractors/Plumbing/Electr. Exempt.
      2021-2022 General Assembly
     Committee:     Senate Commerce and Insurance. If favorable, Date:          May 11, 2021
                    re-refer to Rules and Operations of the Senate
     Introduced by: Sens. Jarvis, Johnson, Britt                   Prepared by: Jeremy Ray
     Analysis of:   First Edition                                               Committee Co-Counsel

     OVERVIEW: Senate Bill 316 would expand the exception to general contractor licensure for licensees
     under Article 2 and Article 4 to include any building project when certain requirements are met.
     *This bill analysis reflects the contents of S316 if the amendment S316-ABH-19 were to be adopted by
     the committee.
     CURRENT LAW: Article 1 of Chapter 87 regulates general contractors. A general contractor is defined
     to mean any person or firm or corporation who for a fixed price, commission, fee, or wage, undertakes to
     bid upon or to construct or who undertakes to superintend or manage, on their own behalf or for any
     person, firm, or corporation that is not licensed as a general contractor the construction of any building,
     highway, public utilities, grading or any improvement or structure where the cost of the under taking is
     $30,000 or more, or under takes to erect a North Carolina labeled manufactured modular building meeting
     the North Carolina State Building Code.
     Article 2 and Article 4 regulate Plumbing and Heating Contractors, and Electrical Contractors,
     respectively.
     G.S. 87-1.1 provides an exception to certain bidding and contracting activities that require a general
     contractor's license for licensees under Article 2 or Article 4 when those licensees contract directly with
     the owner of a public building project and all of the following requirements are met:
            •     A licensed general contractor performs all work that falls within G.S. 87-10(b) and State Licensing
                  Board of General Contractor's rules.
            •     The total amount of the general contracting work does not exceed a percentage of the total bid
                  price as prescribed by administrative rule.
            •     All work that falls within Article 2 or Article 4 is performed by a licensee under those Articles.
     BILL ANALYSIS: Section 1 would modify the exception for general contractor licensure for licensees
     under Article 2 and Article 4 by deleting the word "public" from the term "public building project," thereby
     incorporating any building project into the existing exception.
     Section 2 would allow temporary rules to be adopted to implement the provisions of the bill.
     EFFECTIVE DATE: This act would become effective October 1, 2021.




                                                                                                                                                             Legislative Analysis
     Jeffrey Hudson
                                                                                                                                                                   Division
         Director                                           S316-SMBH-35(e1)-v-3                                                                               919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.

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